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GOLD - No reason to panic... yet

Gold bulls have been on the wrong side of the trading ledger of late, with the yellow metal down $130/oz or almost 10% since its peak back in July.

Regular readers of this blog will know that I published a call to lock in profits on gold mining stocks back on 7 Aug 2016, just moments before gold began its price plunge.

You can read that blog post here but here is the chart anyway showing how good that call was.

Gold - NCM lock in profit forecast

click to enlarge chart

So, how much more downside does gold curretly have...

The next chart shows why a price correction into the $1190 to $1200/oz region is possible and should not give the gold bulls any reason for concern.

Gold - Oct 9 daily chart buying zone

click to enlarge chart

As you can see, a pull back into this zone would represent a 50.0% Fibonacci retracement from the major low back in December last year and would represent a healthy correction.  There is old price support in the $1190/oz area as well which should provide at least some initial support should gold reach these levels.

A strong price movement below these levels, and the gold bulls will need to reconsider their strategy.  

In my Special Gold Report - the 2016 Outlook, I outlined that a significant low was due in gold between October and November.  So far this is playing out right to script.  You can still purchase a copy of that report at a 90% discount by vising the Trade Shop here.

For those clients who have a copy of Trading with the Time Factor - volume 1 & 2, I will write to you separately with a detailed note outlining my price and time objectives for the current gold move down.

As always, keep watching the price action, and...

Until next time...

 

MYER HOLDINGS - THE BETTER TIME TO BUY
S&P 500 - WAITING FOR THE BUY
 

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Wednesday, 29 January 2020

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